Following the HBR article “Creating Shared Value” by Michael Porter and Mark Kramer published in January 2011 the author witnessed an online debate on the subject suggesting that CSV was hardly any more than a strategic move to support FSG, the consultancy run by Michael Porter and Mark Kramer. It was suggested that Porter and Kramer offered nothing new, but gave CSR a new name. But there were also voices claiming that it would be great if CSV was reality. So, there seemed to be something about CSV that some people got and others denied. What was it? In this dissertation the ideas laid down in CSV are evaluated and appraised against related concepts of corporate social responsibility. Special focus lies on the aspects Porter and Kramer used to separate CSV from CSR: justification, value, and concepts for practical application.
The main part of the study consists of a literature review on related topics. It is laid down that basic ideas of CSV have already been introduced in CSR, e.g. with corporate citizenship, sustainability, doing business at the bottom of the pyramid, or community relations. Philosophical considerations on corporate responsibility and political correlations give reason to regard CSV a competitive tool rather than an alternative approach to CSR. The concept is critically appraised from a societal perspective showing that CSV can be applied to benefit all, but does not lead to shared value in itself.
In the second part of the dissertation an explorative study is conducted among energy suppliers and suppliers of outdoor equipment operating in the German market to find out whether Porter and Kramer’s distinction between responsive and strategic CSR can be supported and whether CSV might deliver new options for the companies. The study shows that companies are to a far degree concerned with responsive CSR and gives reason to embrace the idea that it depends on the corporation’s product and business model whether the trend on CSR can be used strategically or has to be applied in a responsive manner.
The author introduces a management model, putting into relation the concepts of CSR and CSV. Plainly spoken, CSR is considered the justification and underlying assumption, while CSV is a management approach that can be applied to address corporate social responsibility.
Table of Contents
- I. Introduction
- A. How the topic was identified
- B. The online debate
- C. What's wrong with CSR?
- D. Research questions and objectives
- II. Theoretical and methodological classification
- A. Research approach
- a. Theoretical framework
- b. Methodology
- i. Flexible research design
- ii. Integrative literature study
- B. Consideration of rejected alternatives
- A. Research approach
- III. Creating Shared Value in the context of CSR theory
- A. Definition of CSV and CSR
- a. Corporate Social Responsibility
- i. CSR in Germany
- b. Creating Shared Value
- a. Corporate Social Responsibility
- B. Justification of CSR
- a. Corporate Citizenship
- b. Philanthropy
- c. Sustainability
- C. Responsibility and power
- a. Defining responsibility
- b. Responsibility and political power
- D. CSV
- E. The value of doing good
- a. Ethical theory
- i. Consequentialist theory
- a. Ethical theory
- A. Definition of CSV and CSR
Objectives and Key Themes
This dissertation aims to evaluate Michael Porter and Mark Kramer's "Creating Shared Value" (CSV) concept within the broader context of Corporate Social Responsibility (CSR) theory. It investigates whether CSV offers a genuinely novel approach or simply rebrands existing CSR practices. The study employs a literature review and an explorative empirical study of energy and outdoor equipment suppliers in Germany.
- Comparison of CSV and existing CSR concepts.
- Analysis of the justifications and practical applications of CSV.
- Examination of the societal perspective on CSV and its potential for shared value creation.
- Empirical investigation of CSV application in selected German industries.
- Development of a management model integrating CSR and CSV.
Chapter Summaries
I. Introduction: This introductory chapter sets the stage for the dissertation. It details how the research topic emerged from an online debate surrounding Porter and Kramer's CSV concept, questioning whether it offers a genuine advancement or simply rebranding of existing CSR strategies. The chapter clearly outlines the research questions and objectives, which focus on evaluating CSV's contribution to CSR theory, considering its practical application, and examining its societal implications. It establishes the framework for the subsequent theoretical and empirical investigations.
II. Theoretical and methodological classification: This chapter outlines the research approach, detailing the theoretical framework used to analyze CSV and its relationship to CSR. The methodology, including the flexible research design and the integrative literature study, is explained. The chapter also justifies the chosen approach by explicitly addressing and rejecting alternative research strategies, demonstrating a rigorous and well-considered methodology underpinning the research.
III. Creating Shared Value in the context of CSR theory: This chapter forms the core of the theoretical analysis. It begins by defining CSV and CSR, drawing distinctions and highlighting areas of overlap. The chapter extensively examines the justifications for CSR, including corporate citizenship, philanthropy, and sustainability. It also delves into the complex relationship between responsibility and power, exploring the ethical and political dimensions of corporate social responsibility. The chapter then critically assesses CSV from a societal perspective, questioning whether it inherently leads to shared value or serves primarily as a competitive tool. Finally, it evaluates the concept of the "value of doing good" through the lens of ethical theory, particularly consequentialist perspectives.
Keywords
Creating Shared Value (CSV), Corporate Social Responsibility (CSR), Michael Porter, Mark Kramer, Sustainability, Corporate Citizenship, Philanthropy, Ethical Theory, Stakeholder Theory, Competitive Advantage, Germany, Energy Suppliers, Outdoor Equipment.
FAQ: Creating Shared Value in the Context of Corporate Social Responsibility
What is the main topic of this dissertation?
This dissertation evaluates Michael Porter and Mark Kramer's "Creating Shared Value" (CSV) concept within the context of Corporate Social Responsibility (CSR) theory. It investigates whether CSV is a truly novel approach or simply a rebranding of existing CSR practices. The study uses a literature review and an empirical study of German energy and outdoor equipment suppliers.
What are the key research questions and objectives?
The research aims to compare CSV and existing CSR concepts, analyze CSV's justifications and applications, examine societal perspectives on CSV and its potential for shared value creation, empirically investigate CSV application in German industries, and develop a management model integrating CSR and CSV.
What is the methodology used in this dissertation?
The dissertation employs a flexible research design with an integrative literature study. The methodology is explicitly justified by considering and rejecting alternative research strategies.
How are CSV and CSR defined and compared in this work?
The dissertation provides detailed definitions of both CSV and CSR, highlighting their similarities and differences. It examines various justifications for CSR, including corporate citizenship, philanthropy, and sustainability.
What is the role of ethical theory in the analysis?
The dissertation evaluates the "value of doing good" through the lens of ethical theory, particularly consequentialist perspectives. It explores the ethical and political dimensions of corporate social responsibility, considering the relationship between responsibility and power.
What industries are included in the empirical study?
The empirical investigation focuses on energy and outdoor equipment suppliers in Germany.
What are the key themes explored in the dissertation?
Key themes include the comparison of CSV and existing CSR concepts, the analysis of CSV's justifications and practical applications, the societal perspective on CSV and its potential for shared value creation, and the development of a management model integrating CSR and CSV.
What is the overall structure of the dissertation?
The dissertation is structured into three main parts: an introduction outlining the research topic and objectives; a section on the theoretical and methodological framework; and a core section analyzing Creating Shared Value within the context of CSR theory. This includes an in-depth analysis of CSR justifications and a critical assessment of CSV from a societal perspective.
What are the key words associated with this dissertation?
Creating Shared Value (CSV), Corporate Social Responsibility (CSR), Michael Porter, Mark Kramer, Sustainability, Corporate Citizenship, Philanthropy, Ethical Theory, Stakeholder Theory, Competitive Advantage, Germany, Energy Suppliers, Outdoor Equipment.
- Quote paper
- Natalie Junge (Author), 2011, The Contribution of Porter and Kramer's Concept of Creating Shared Value to CSR Theory, Munich, GRIN Verlag, https://www.grin.com/document/183594
